UK needs export strategy, say food producers

by Hannah Kuchler - 08/03/2010

"Food producers are calling for a national export strategy to help them take advantage of the weak pound to sell more products overseas. "

The Food and Drink Exporters Association is alarmed that the government has scrapped Food from Britain, a body which supported exporters, just as food exports are rising.

“The Bric countries could be a huge opportunity for us – but for a small or medium-sized business to tackle the Indian market is just too difficult – they don’t have the resources,” said John Whitehead, director of the FDEA.

Food and drink exports were worth £10.28bn in the first nine months of 2009.

Exports were up 10.2 per cent in the first half of 2009 but growth has slowed to 5.4 per cent in the first nine months, according to figures collated by the Food and Drink Federation. In the same period overall commodity exports fell 14.3 per cent.

Praveen Vijh, co-founder of Eat Natural, which has been exporting snack bars for 12 years, believes it is at a disadvantage to competitors from other countries who receive support from their governments.

Speaking from the ISM confectionary trade fair in Cologne, he said: “It feels like we’re here without our parents – we look around and Belgium have a beautiful stand organised by the government, Germany, Switzerland – all the other exporters have government support.”

Exporters still rely on attending trade shows to build a relationship with foreign retailers. Stephen Jones is the managing director of Somerdale Cheese which has been selling to the US and the Caribbean for 20 years. It spends about 10 per cent of its profit on attending trade shows.

Mr Jones said: “The UK market is very tough with just the four main retailers – so export sales are our opportunity – and they should create employment.”

Mr Whitehead is in talks with the Department for Business, Innovation and Skills (BIS), who are now overseeing exports for all sectors, about securing help for the industry.

He does not believe the strategy would require significant investment. Food from Britain, which was run by Department for Environment, Food and Rural Affairs but closed in March, ran on only £5m.

BIS is providing some of the services that Food from Britain used to offer. But their “passport to export” campaign is focused on getting small businesses to start exporting and has little provision for those interested in emerging markets.

Mr Whitehead said: “Small companies think ‘thank you very much’ and are grateful for what they’re getting, but those companies who have created the industry worth billions of pounds won’t be able to continue bringing in those billions.”
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